Adeleke Raises the Alarm, Says Osun Owes N407.32bn Debt

*Says Oyetola must explain N331bn borrowed for infrastructural devt, N18bn bridge loan 

*I never took any bank loan in four years, former governor insists

*Challenges Adeleke to publish details of Osun debts with procurement dates 

Yinka Kolawole in Osogbo

Governor Ademola Adeleke of Osun State yesterday informed Osun State Traditional Rulers about the financial health of the state, saying Osun was indebted to the tune of N407.32 billion.
But, Ismail Omipidan, who is the Media aide to the immediate past Osun Governor, Adegboyega Oyetola, in reaction reiterated that his principal never took any bank facility for the four years he served as governor.

Adeleke who revealed the state’s debt in his address at a meeting held at the Government House, Osogbo, said: “Not one kobo of this loan was left in government coffers when my Deputy Governor, Prince Kola Adewusi and himself resumed work on Monday 29th November 2022 and no explanation on how the loan was expended.”

 According to him, “I called this meeting first to meet our royal fathers and to present to you the official debt profile of Osun state as at November 30th, 2022, as submitted to me by the Accountant General of Osun State.
“With high sense of responsibility, I am reporting to our people through our traditional rulers, the total debt profile inherited by my administration from Governor Gboyega Oyetola’s administration.”

Adeleke stressed that the meeting was in pursuance of his pledge to Osun people to be transparent and run an open government.
Adeleke contended that his administration also inherited eight outstanding loan facilities, apart from salaries and pension debts, from Oyetola’s administration, saying the repayment period ranged from 16 months to about 28 years.

The outstanding loans inherited Adeleke noted included Budget Support Facility with Outstanding Balance of N51.8 billion, Monthly repayment: N154.9m, while repayable Period was fixed at 335 months. That is 27 years and nine months.
Also salary Bail Out Loan with outstanding balance at N38.8 Billion, monthly repayment: N232.77 million; Repayable Period Outstanding: 167 Months, which is 13 years and nine months.

It also included Restructured Commercial Bank Loans: Outstanding Balance: N158.77 Billion, Monthly Repayment: N1.14 Billion and repayable Period Outstanding: 139 Months.
Others the governor disclosed were Excess Crude Account (ECA) Loan: Outstanding Balance: N14.48 Billion, Monthly Repayment: N89.97 million, Repayable Period Outstanding: 161 Months.

CBN Infrastructure Loan: Outstanding Balance: N9.2 Billion; Monthly Repayment: N44.98 million, Repayable Period Outstanding: 205 months.
In addition, there was outstanding loans which included FGN Intervention Loan: Outstanding Balance: N1.7 billion; Monthly Repayment: N100 million repayable and Period Outstanding:
17 months; FGN Bridge Finance Facility: N18.04 Billion, Foreign loans: $86.2 million.
Adeleke said the total loan stock presently stood at N331.32 billion, saying that if the N76 billion debt on salaries and pension were added, the state would be indebted to the tune of N407.32 billion. According to him, the amount owed contractors was yet to be determined.

“The only Fund in government coffers, as at Monday 29th November, was for November 2022 salary. Otherwise, the state treasury was empty.
“As your Governor, I will ask questions on your behalf. And I will demand for answers. Governor Oyetola must explain how the N331 billion borrowed in the name of Osun State was expended, with no obvious infrastructural development to justify this huge debt.
“Governor Oyetola must explain how the N18 billion bridge loan taken after he lost the election on July 16, 2022, was expended.
“Governor Oyetola must also explain why Osun state is owing salaries and pension to the tune of N76 billion after collecting a N50 billion Salary Bailout loan from the federal government.”

The governor added: “The creditors, especially the commercial banks must explain why various loans were given to an administration beyond its 4-year tenure. Twenty-eight years is equivalent to the tenure of at least four governors. A child that is born today would have earned a PhD at 28 years of age. This is nothing but mortgaging the future of Osun State with nothing to show for it. This is definitely not acceptable.”

Meanwhile, in reaction, Omipidan disclosed that his principal never took any bank facility for the four years he served as governor.
He noted that the debt in question was incurred by the Rauf Aregbesola’s administration.
Omipidan further described the claim by the new governor that Oyetola took N18 billion loan facility as not only outlandish, but unfounded, insisting that the claim was made out of sheer ignorance and mischief.

He then challenged Adeleke to publish details of the outstanding loan facilities he claimed his administration inherited and the years they were procured.
Omipidan said the government was out to smear and blackmail Oyetola’s personality but that Osun citizens and Nigerians from far and near knew the truth.
“When talking about loans, you cannot talk of maturity date without talking about the dates they were procured.

“It is either that those who prepared the speech for the Governor to read did not understand the implications of their position or they did it out of sheer mischief to expose their Principal or both.

“Otherwise, if they had read and understood my Principal’s Farewell Speech very well, they would not have alleged that he took N18 billion loan.

“Again, even in the table they released by themselves, they contradicted themselves. Take a look at item seven on their list, they captured the N3 billion monthly as having commenced from December 2021, and that it came for six months. Yet, they claim the same N18 billion was accessed after the July election. You see why I said they are either confused or are out for mischief or even both.

“In the third paragraph of the speech from the rear, my Principal had said ‘for four years, we did not take any bank loan facility. But we benefitted from the N3 billion monthly intervention from the federal government for six months to cushion the effect of deductions of budget support facility and salary bailout accessed by the previous administration, just as we have paid N97 billion from the total debt we inherited in 2018.

“I want to believe that is what they have now twisted to call loan. This intervention was extended to all the 36 states of the Federation. And the monthly N3 billion for six months came before the July 16 governorship election. This is a fact that can be verified.

“Let me restate here that we never took any bank facility, and we challenge the government to publish balances of all bank accounts belonging to the State as at November 26, 2022. When the Oyetola administration took over in 2018, we inherited humongous debt but we never complained or made excuses. “What we did was to get to work and find means of making things work for the four years we have governed Osun and we reduced the debts we inherited by N97 billion.

“By the way, Governor Adeleke announced the freezing of all government accounts on November 27, when he took over. Till date, he is yet to announce that he has unfrozen the accounts. Yet, they have been spending from state government coffers since then. So, where is the money coming from?

“This is where you will know that those around the governor are a bunch of liars who are not prepared for governance but preparing grounds for excuses and non-performance,” Omipidan added.